Asian Shares Plunge as Wild Market Swings Precede US Jobs Data

Asian shares declined on Friday as investors struggled to make sense of wild fluctuations in bond and currency markets, ahead of crucial US jobs data. The US nonfarm payrolls report is expected to show a gain of 90,000 jobs in September, with the unemployment rate steady at 4.1%. A strong print could reignite hopes for a second interest rate hike from the Federal Reserve this month.

A hot wages figure would likely push Treasury yields higher, ending a brief respite overnight. The benchmark 10-year yield hit a 24-year high of 5.34% following its biggest quarterly rise in 32 years. Meanwhile, US ISM Manufacturing PMI showed a significant jump in the prices paid component, indicating more cost pressures.

Chris Weston, head of research at Pepperstone, warned that a sustained increase in term premium could be problematic for risk assets. The euro slipped to $1.1250, its lowest level since May 2025, while the US dollar index rallied 0.6% overnight to hit the highest level since April 2025.

Oil prices remained elevated due to a reported US military buildup in the Gulf and China's suspension of oil product exports. The West Texas Intermediate crude futures contract slipped 0.4% to $92.46 a barrel, while Brent crude futures held above $102 a barrel.